ManagementScope.Connect failing with error E_ACCESSDENIED error while being run from Windows Service

I am trying to connect to Windows WMI through service by filling the ManagementScope variables and trying to connect to remote machine. The Connect is succeeding if I am running as windows console, but failing when I am running the same code from windows service.

The code Iam using is as follows:

ManagementScope scope = null;

scope = new ManagementScope("\\\\" + m_sComputerName + "\\root\\cimv2");
if (m_sLoginName != null && m_sPassword != null)
{
    scope.Options.Username = m_sLoginName;
    scope.Options.Password = m_sPassword;
}

scope.Options.EnablePrivileges = true;
scope.Options.Authentication = AuthenticationLevel.PacketPrivacy;
scope.Options.Impersonation = ImpersonationLevel.Impersonate;
scope.Connect();
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I am running the windows service as Local System. The code is being written in C# with .net version 4.0

Any help much appreciated.

Thanks

By default, the LocalSystem account does not have access to network resources - see here. If you need to access network resources from your service, consider running it as a domain account. While it is possible to authorize access to remote resources for LocalSystem, doing so is not recommended. Another option would be to run the service as NT AUTHORITY\NetworkService - see here, in which case the service will be authenticated as the machine account when accessing network resources.